Viacom18-Star India merger set for completion by Q3 FY25

Viacom18 and Star India Private Limited are on track to finalise their merger by the third quarter of FY25, pending final regulatory approvals. The merger aims to consolidate operations between the two media giants, positioning them for enhanced growth and competitive strength.

“The companies are in the process of obtaining other requisite approvals for the completion of the transaction and transaction closer is expected in 3Q FY 25,” said the company in their filing for financial results for the quarter and half year ended September 30, 2024

The companies have already secured key approvals from the Competition Commission of India (CCI) and received the National Company Law Tribunal (NCLT), Mumbai Bench’s sanction for the Scheme of Arrangement. With only a few more formalities to complete, the merger is in its final stages, according to a regulatory filing.

On February 28, Reliance Industries Ltd (RIL) and The Walt Disney Company signed definitive agreements to form a joint venture, merging the operations of Viacom18 and Star India.

RIL will invest Rs11,500 crore at the deal's closing to fuel the joint venture’s growth strategy, valuing the entity at Rs 70,352 crore on a post-money basis, excluding synergies.

The merger of TV18 Broadcast Ltd. (TV18), and e-Eighteen.com Ltd. (E18) with Network18 Media

& Investments Ltd. (Network18) through a Scheme of Arrangement was also sanctioned by the National Company Law Tribunal, Mumbai Bench and was made effective on 3rd October 2024.

“Record Date for the purpose of determining the equity shareholders of TV18 and E18 entitled to

receive the equity shares of Network18, as per the Scheme, has been set as October 16, 2024,” the company said in their filing.

Overall, Reliance Industries Ltd’s media segment posted quarterly revenue of Rs2,118 crore in Q2 FY25, reflecting a marginal decline of 2.1%. 

The company’s media business reported a loss of Rs 188 crore in Q2 FY25, up from Rs 155 crore in Q2 FY24.

In its report, the company attributed the decrease in revenue to a sharp drop in revenues from the movie segment, a project-based business with no major releases this quarter. In comparison, the same period last year saw two big-ticket releases by Viacom18 Studios, which significantly boosted revenue. 

However, the overall TV advertising environment remained subdued, with ad volumes in the news genre dropping by over 20% year-on-year. 

On the entertainment side, operating revenue fell by 5%, from Rs 1,865 crore in Q2 FY24 to Rs 1,825 in Q2 FY25 mainly due to the slowdown in the movie segment. 

However, the decline was offset by growth in subscription revenues, fueled by new pricing strategies and increased monetization of the sports portfolio, it said, adding that the digital ad revenue, driven by both sports and non-sports segments, also contributed to revenue growth. 

“JioCinema emerged as the fastest-growing subscription-based OTT platform,” surpassing 16 million paid subscribers, with strong traction from new subscription plans, it said, adding that the success of Bigg Boss OTT's third season and Bigg Boss Marathi further boosted subscriptions and engagement, while the addition of international content attracted new users. 

The Group continued to invest in sports and digital offerings, which impacted operating profits during the quarter. 

The network’s TV news bouquet achieved an 11.9% market share in the news genre. 

According to RIL filings, CNBC TV18 maintained its dominance as the top business channel with a 68% viewership share, while CNN News18 led the English news segment with 39.5% share. 

News18 India continued to be the top Hindi news channel, with leadership in key Hindi-speaking regions like UP/Uttarakhand, Bihar/Jharkhand, and Rajasthan. Network18’s digital portfolio also performed well, with 240 million monthly unique visitors. 

Moneycontrol saw 50% year-on-year growth in UVs, reinforcing its position as India’s leading financial news platform with over 9.2 lakh paid subscribers.

Viacom18’s TV network also reported improved performance, with viewership share rising to 11.1%.